Financial Crime World

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What is Money Laundering in Samoa?

The Financial Action Task Force (FATF) has been evaluating the implementation of its recommendations by Samoa, a Pacific island nation. The evaluation assesses the extent to which Samoa has implemented the technical requirements of the FATF Recommendations.

Samoa’s Progress in Implementing Anti-Money Laundering and Combating the Financing of Terrorism Measures

The 2015 Mutual Evaluation highlights several areas where Samoa has made significant progress:

  • Risk Assessment: Samoa has made significant strides in assessing risk and applying a risk-based approach to AML/CFT.
  • National Cooperation: Samoa has demonstrated good national cooperation and coordination among its various authorities.

Samoa has also implemented laws and regulations to criminalize money laundering and terrorist financing, as well as established procedures for confiscation and provisional measures.

Areas Requiring Improvement

However, there are still several areas that require improvement:

  • Regulation and Supervision: Samoa needs better regulation and supervision of financial institutions, DNFBPs (Designated Non-Financial Businesses and Professions), law enforcement and investigative authorities.
  • Customer Due Diligence: Samoa requires strengthening its customer due diligence requirements.
  • Record Keeping Practices: Samoa needs to improve its record keeping practices.

Additionally, Samoa needs to:

  • Improve transparency and beneficial ownership of legal persons and arrangements
  • Strengthen regulation and supervision of correspondent banking relationships

International Cooperation

Samoa has made significant progress in implementing mutual legal assistance agreements and has demonstrated a commitment to freezing and confiscating assets related to terrorism and terrorist financing.

Compliance Issues

However, there are still areas where Samoa needs to improve its compliance:

  • Targeted Financial Sanctions: Samoa requires better implementation of targeted financial sanctions related to proliferation and terrorist financing.
  • Reporting of Suspicious Transactions: Samoa needs to strengthen its reporting of suspicious transactions.
  • Tip-Off Procedures: Samoa needs to improve its tip-off procedures.

Conclusion

While Samoa has made significant progress in implementing AML/CFT measures, there are still several areas that require improvement. The country’s authorities must continue to work towards full compliance with the FATF Recommendations to ensure that it remains a reliable and stable member of the international financial system.